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V / T-y*T/ ■ i\ ^ / /7 u/ 7 



The 
NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



NOTICE 



PROPOSED RULES 




Environment, Health, and Natural Resources 


Human Resources 






Insurance 






Medical Examiners 






FINAL RULES 


RECEIVED 


Revenue 


JAN 


17 m 


List of Rules Codified 


C«^<7 


LIBRARY 


ARRC OBJECTIONS 







RULES INVALIDATED BY JUDICIAL DECISION 



ISSUE DATE: JANUARY 15, 1991 
Volume 5 • Issue 20 • Pages 1215-1244 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter I SOB of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise appro.ximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
\ided free of charge to each county in the state and to 
various state officials and institutions. The North CaroUna 
Register is a\ailable by yearly subscription at a cost of 
one hundred and five dollars ($105.00) for 24 issues. 

Requests tor subscriptions to the North CaroUna 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 27447, Raleigh, N. 
C. 27611-7447, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Caroli>ia Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment uill be a\ailable for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantialU' from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 day 
whichever is less. An agency adopting a temporary ru 
must begin normal rule-making procedures on the pe 
manent rule at the same time the temporary rule 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) 
a compilation and index of the administrative rules c 
25 state agencies and 38 occupational licensing board 
The NCAC comprises approximately 15,000 letter siz< 
single spaced pages of material of which approximate 
ly 35 9o is changed annually. Compilation and public 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Eac 
state agency is assigned a separate title which is fu 
ther broken down by chapters. Title 21 is designate 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimui 
cost of two dollars and 50 cents ($2.50) for 1 
pages or less, plus fifteen cents ($0. 1 5) per eac 
additional page. 

(2) The full publication consists of 53 volume 
totaling in excess of 15,000 pages. It is su 
plemented monthly with replacement pages 
one year subscription to the full publication i 
eluding supplements can be purchased f( 
seven hundred and fifty dollars ($750.00). I 
dividual volumes may also be purchased wi 
supplement service. Renewal subscriptions f 
supplements to the initial publication availabi 

Requests for pages of rules or volumes of the NC/5 
should be directed to the Office of Administrati 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pi 
cedures to be followed. For specific statutory languaj 
it is suggested that Articles 2 and 5 of Chapter 150B 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issi 
page number and date. 1:1 NCR 101-201, April 1, 19 

refers to Volume 1, Issue 1, pages 101 through 201 
the North Carolina Register issued on April 1, 198d 



North Carolina Register. Published bi-monthly by the 
Office of Administrative Hearings, P.O. Drawer 27447, 
Raleigh, North Carolina 27611-7447, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars ($105.00) per year 

North Carolina Administrative Code. Published in 
looseleaf notebooks with supplement service by the 
Office of Administrative Hearings, P.O. Drawer 27447, 
Raleigh, North Carolina 27611-7447, pursuant to 
Chapter 150B of the General Satutes. Subscriptions 
seven hundred and fifty dollars ($750.00). Individual 
volumes available. 



I 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




Office of Administrathe Hearings 

P. O. Drawer 27447 

Raleigh, AC 27611-7447 

(919) 733 - 2678 



I. NOTICE 

OAH, Change of Address 1215 



II. PROPOSED RULES 

Environment, Health, and 
Natural Resources 

State Registrar 1221 

Wildlife Resources 

Commission 1220 

Human Resources 

Facility Services 1216 

Mental Health, Developmental 
Disabilities and Substance 

Abuse Services 1219 

Insurance 

Admission Requirements 1 220 

Licensing Board 
Medical Examiners 1222 



Julian Mann III, 

Director 
James R. Scarcella Sr., 

Deputy Director 
Molly Masich, 

Director APA Services 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 



III. FINAL RULES 
Revenue 

Intangibles Tax Division 1226 

List of Rules Codified 1230 

TV. ARRC OBJECTIONS 1236 

V. RULES rVS ALIDATED BY 

JUDICIAL DECISION 1239 

VL CUMULATFV^E INDEX 1241 



NORTH CAROLINA REGISTER 

Publication Schedule 

(April 1990 - December 1991) 



Issue 


Last Day 


Last Day 


Earliest 


+ 


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for 


for 


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Earliest 




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Electronic 


Public 


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Filing 


Hearing & 
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Agency 


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+++++**^ 


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* The "Earliest Effective Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency fdes the rule with The Administrative Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the rule at the next calendar month meeting. 



NOTICE 



NOTICE OF CHANGE OF ADDRESS FOR OFFICE OF ADMINISTRATIVE HEARINGS 



Please take notice that the Office of Administrative Hearings is relocating its Post Office Drawer to 
the Main Station on New Bern Avenue in Raleigh, North Carolina. By relocating to the Main Station, 
OAH will have an earlier mail delivery and internal distribution. This change is effective immediately. 

The physical location of this Office remains at 424 North Blount Street, Raleigh, NC 27601. 

Please take notice of the following change of address: 

Office of Administrative Hearings 

P. O. Drawer 27447 

Raleigh, NC 27611-7447 



5:20 NORTH CAROLINA REGISTER January 15, 1991 1215 



PROPOSED RULES 



TITLE 10 DEPARTMENT OF HUMAN 
RESOURCES 

lyotice is hereby gh-en in accordance with G.S. 
I SOB- 1 2 that the Certificate of Need Section, Di- 
vision of Facility Services, Department of Human 
Resources intends to adopt nile(s) cited as 10 
NCAC3R .280/ - .2809. 

1 he proposed effecti\-e date of this action is May 
I, 1991. 

1 he public hearing will be conducted at 1 :00 
p.m. on Februaiy 14, 1991 at the Division of Fa- 
cilitv Sen-ices, Room 201. 70 J Barbour Dri\'e, 
Raleigh. Sorth Carolina 27603. 

C ommcnt Procedures: Written comments con- 
cerning the rules should be submitted as soon as 
possible but no later than February 20. 199! to 
Jackie Sheppard at 701 Barbour Drixe. Raleigh, 
North Carolina 27603. Oral comments may be 
presented at the hearing. 

CHAPTER 3 - FACILITY SERVICES 

SUBCHAPTER 3R - CERTIFICATE OF NEED 
REGULATIONS 

SECTION .2800 - CRITERIA AND STANDARDS 
FOR REHABILITATION SERVICES 

.2801 DEFINITIONS 

The definitions in this Rule will apply to all 
rules in this Section. 

(1) "Rehabilitation Facility" means a public 
or private health ser\ice facility licensed 
pursuant to 10 NCAC 3C .0201 which is 
operated for the primary purpose of provid- 
ing rehabilitation scn.ices to disabled per- 
sons through an integrated program of 
medical and other ser\'ices which are pro- 
vided under competent, professional super- 
\ision in coordination with the patient's 
family. 

(2) "Rehabilitation" means the process to 
maintain, restore or increase the function of 
disabled individuals so that the individuals 
can live in the least restrictive environment, 
consistent with his or her objective. 

(3) "Outpatient Rehabilitation Clinic" is de- 
fmed as a program of coordinated and inte- 
grated outpatient services, evaluation, and/or 
treatment with emphasis on improving the 
functional level of the person in coordi- 
nation with the patient's family. 



(4) "Rehabilitation Beds" means inpatient beds 
in a facility or a unit of a facrlitv licensed 
pursuant to 10 NCAC 3C .0201. ' 

(5) "Traumatic Brain Injury" is defined as an 
insult to the brain that may produce a di- 
minished or altered state of consciousness 
which results in impairment of cognitive 
abilities or physical functioning. It can also 
result in the disturbance of behavioral or 
emotional functioning. These impairments 
may be either temporary or permanent and 
cause partial or total functional disability or 
psychological maladjustment. 

(National Head Injury Foundation) 

(6) "Stroke" (cerebral infarction, hemorrhage) 
is defmed as the sudden onset of a focal 
neurologic deficit due to a local disturbance 
in the blood supply to the brain. 

(7) "Spinal Cord Injury" is defmed as injury to 
the spinal cord that results in the loss of 
motor or sensor>' function. 

(8) "Pediatric Rehabilitation" is defmed as in- 
patient rehabilitation services provided to 
persons 14 years of age or younger. 

Statutory Authority G.S. /3JE-/77; 13IE-189(b). 

.2802 CAPACITY IN THE FACILITY AND 
SERVICE AREA 

(a) Proposals fded by or on behalf of facilities 
for rehabilitation beds must be consistent with 
the policies and bed need projections in the 
North Carolina State Medical Facilities Plan. 

(b) A proposal to establish new or expanded 
rehabilitation beds must specify the total number 
of rehabilitation beds in the facility or unit to be 
operated following completion of the proposed 
project. 

(c) A proposal to establish new or expanded 
rehabilitation beds shall demonstrate in the cer- 
tificate of need application that: 

( 1 ) The new or expanded program specifically 
defmes its target population: 

(2) Arrangements and responsibilities for ad- 
ministration and medical direction are 
clearly specified; 

(3) An allocation plan for clinical personnel 
(e.g., rehabilitative nurses and therapists)- 
and ancillary' services exists; 

(4) Strong referral and transfer agreements 
exist among all units within the program, 
with the facilities in which they are situ- 
ated and the existing health service system 
in the proposed service area; 

(5) A program plan for participation in re- 
search and educational programs for re- 
habilitation exists; 



1216 



5:20 NORTH CAROLINA REGISTER January 15. 1991 



PROPOSED RULES 



(6) The program provides or establishes ar- 
rangements for post-inpatient rehabili- 
tation services and follow-up, including 
outpatient rehabilitation services, 
(d) A proposal to establish new rehabilitation 
beds shall not be approved unless the average 
occupancy, over the 12 months immediately 
preceding the submittal of the proposal meets or 
exceeds the following levels: 

(1) 80 percent in units or facilities with 0-49 
rehabilitation beds, or 

(2) 85 percent in units or facilities with 50-99 
rehabilitation beds, or 

(3) 90 percent in units or facihties with more 
than 100 rehabilitation beds, and 

(4) utilization in any other existing rehabili- 
tation facilities in the service area also 
meet the appropriate levels of occupancy 
Ln Subparagraphs (d)(1), (2), and (3) of 
this Rule. 

Statutory Authority G.S. I3IE-177; I3IE-I89(b). 

.2803 PROJECTED UTILIZATION/ 
OCCUPANCY 

(a) A proposal to establish new or expanded 
rehabilitation beds must project an occupancy 
level for all rehabilitation beds in the facility by 
specialty area and average length of stay (ALOS) 
for each of the fu"st eight calendar quarters fol- 
lov,'ing completion of the proposed project. The 
applicant must clearly document all assumptions, 
including the specific methodologies by which 
occupancies are projected. 

(b) A proposal to establish new or expanded 
rehabilitation beds shall not be approved unless 
occupancy is projected, based on reasonable as- 
sumptions and methodologies, to be 80 percent 
for and 49 rehabilitation beds proposed to be 
operated, 85 percent for 50 and 99 rehabilitation 
beds proposed to be operated and 90 percent for 
greater than 99 rehabilitation beds proposed to 
be operated, no later than two years following 
completion of the proposed project. The appli- 
cant must clearly document all assumptions, in- 
cluding the specific methodologies by which 
occupancies are projected. 

(c) A proposal to establish new or expanded 
rehabilitation beds via a net bed addition to the 
facility's total rehabilitation bed capacity shall 
not be approved unless occupancy is projected, 
based on reasonable assumptions and methodol- 
ogies, to be 80 percent for between and 49 total 
licensed rehabilitation beds, 85 percent for be- 
tween 50 and 99 total licensed rehabilitation beds 
and 90 percent for greater than 99 total licensed 
rehabilitation beds proposed to be operated no 
later than two years following completion of the 



proposed project. The apphcant must clearly 
document all assumptions, including the specific 
methodologies by which occupancies are 
projected. 

Statutory Authority G.S. J3JE-J77; I3IE-I89(b). 

.2804 PROJECTED PATIENT ORIGIN 

(a) A proposal to establish new or expanded 
rehabilitation beds must project patient origin by 
percentage by county of residence for each spe- 
cialty area proposed (i.e., traumatic brain injury 
(TBI), stroke, spinal cord injury and pediatrics, 
etc.). All assumptions, including the specific 
methodology by which patient origin is projected 
must be clearly stated in the certificate of need 
application. 

(b) A proposal to add rehabilitation beds to an 
existing facility must show the current patient 
origin by percentage by county of residence for 
each current specialty area (i.e., traumatic brain 
injury (TBI), stroke, spinal cord injury and 
pediatrics, etc.). All assumptions, including the 
specific methodology- by which patient origin is 
projected must be clearly stated in the certificate 
of need application. 

Statutory Authority G.S. 13IE-177; I31E-IS9(b). 

.2805 SITE, BUILDING AND EQUIPMENT 

(a) A proposal to establish new or expanded 
rehabilitation beds must demonstrate that the 
services wLU be offered in a physical environment 
that conforms to the requirements of federal, 
state and local regulator)' bodies. 

(b) A proposal to provide new or expanded 
rehabilitation beds must consider the site location 
in relation to the availability of support services 
associated with a continuum of care. 

(c) A proposal to provide new or expanded 
rehabihtation beds must demonstrate in the cer- 
tificate of need application that consideration has 
been given to the factors that may delay or pre- 
vent the development or offering of services on 
the proposed site and according to the timetable 
proposed in the certificate of need application, 
(i.e., to include but not be limited to zoning, fi- 
nancing, obtaining water and sewer, other CON 
projects under development or consideration, 
etc.) 

(d) A proposal to estabUsh new or expanded 
rehabilitation beds to serve children 14 years of 
age or younger shall not be approved unless the 
applicant demonstrates that the facility will be 
constructed or renovated to ensure physical and 
programmatic separation between children and 
adult patients. 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



1217 



PROPOSED RULES 



Statutory Authority G.S. 13IE-177; B1E-I89(b). 

.2806 STAFFING 

(a) A proposal to establish a new or expanded 
rehabilitation facility must identify which of the 
following rehabilitation services shall be provided 
in the facihty upon hcensure and operation of the 
new or expanded rehabilitation beds; 

(1) Case Management; 

(2) Occupational Therapy; 

(3) Physical Therapy; 

(4) Physiatrist or a physician qualified by 
virtue of training and experience; 

(5) Psychology; 

(6) Rehabilitation Nursing; 

(7) Respiratory Therapy; 

(8) Social Work; 

(9) Speech-Language Pathology and 
Audiology; 

(10) Vocational Rehabilitation; 

(11) Orthotics; 

(12) Prosthetics; and 

(13) Other. 

(b) A proposal to establish a new or expanded 
rehabilitation facility shall identify and justify the 
number of rehabilitation personnel who are 
projected to have direct contact with the disabled 
person in each of the categories in Paragraph (a) 
of this Rule. 

(c) The applicant shall not be approved unless 
documentation is provided in the certificate of 
need application showing the availability and 
proximity of medical, rehabilitation, ancillary and 
support staff to the proposed new or expanded 
rehabilitation program. 

Statutory Authority G.S. /3/E-J77; 13IE-I89(b). 

.2807 ACCESSIBILITY OF SERVICES 

(a) A proposal to establish new or expanded 
rehabilitation beds shall provide assurance that 
the facility wiU be certified for participation in the 
Title XIX (.Medicaid) and Title XVIII (Medi- 
care) programs upon completion of the project 
and shall serve Medicare and .Medicaid recipients. 

(b) Ihe applicant shall provide documentation 
describing the mechanism that wLU be used to 
insure that the projected number of medically 
underserved wiU be served by the facility. 

(c) The applicant shall provide a copy of the 
written admissions policies identifying any pre- 
payment or deposit requirements for the facility 
and clearly stating the admissions requirements 
for the following payor categories: 

(1) private pay; 

(2) medicaid beneficiaries; 

(3) medicare beneficiaries; 

(4) uninsured indigent patients; 



(5) underinsured indigent patients; and 

(6) fully insured patients. 

(d) The applicant shall provide a written de- 
scription of the billing procedures, including the 
credit collection policies, that will be utilized by 
the facility. 

(e) The apphcant shall submit documentation 
in the certificate of need application to demon- 
strate that the health care community Ln the 
proposed unit or facilities service area have been 
invited to comment on the proposed project, 
particularly with regard to the facihty's referral 
mechanisms and admission policies for the med- 
ically underserved. 

Statutory Authority G.S. I3IE-I77; I31E-I89(b). 

.2808 QUALITY OF SERVICES 

(a) In competitive certificate of need reviews, 
preference shall be given to new or expanded re- 
habilitation programs that are currently program 
accredited or propose to be program accredited 
by the Commission on the Accreditation of Re- 
habilitation Facilities (CARF) or the Joint 
Commission on the Accreditation of Health Care 
Organizations (JCAHO) no later than by the end 
of the second year of operation of the project. 

(b) A proposal to add rehabiUtation beds to an 
existing facility shall not be approved if the facil- 
ity has operated on a provisional license, received 
an administrative penalty or had its admissions 
suspended within the 18 month period imme- 
diately preceding the submittal of the certificate 
of need application. 

Statutory Authority G.S. 13IE-I77; I3IE-lS9(b). 

.2809 RELATIONSHIP TO THE EXISTING 
SERVICE NETWORK 

(a) An applicant proposing to establish a new 
or expanded rehabilitation program shall include 
written policies and procedures in the certificate 
of need application which demonstrate that the 
facility has or will have patient referral, transfer 
and follow-up procedures. 

(b) The applicant shall document in the certif- 
icate of need application the proximity of the 
proposed facility or unit to the following services: 

(1) support services; 

(2) ancillary services; 

(3) public transportation; 

(4) outpatient rehabilitation clinics; 

(5) home health agencies; 

(6) group homes for disabled persons; 

(7) other special care units or services. 

(c) In competitive certificate of need reviews, 
preference shall be given to proposals for reha- 
bilitation beds which make outpatient rehabili- 



1218 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



PROPOSED RULES 



tation services available to their discharges as well 
as to other persons in need of their services in the 
proposed service area. 

(d) A proposal to provide new or expanded 
rehabilitation services must demonstrate in the 
certificate of need application that coordination 
exists or shall be arranged for with the existing 
health care system in each of the counties listed 
in Rule .2804(a) of this Section that represents 
at least five percent of total number of patients 
projected prior to completion of the project. 

Statutory Authority G.S. I31E-I77; I31E-I89(b). 
****************** 



IS otice is hereby given in accordance with G.S. 
1 SOB- 1 2 that the Commission for Mental Health, 
Developmental Disabilities and Substance Abuse 
Services intends to amend rule(s) cited as 10 
NCAC I4K .0408 and repeal rule(s) cited as 10 
NCAC 14K .0325. 

1 he proposed effective date of this action is May 
1. 1991. 

1 he public hearing will be conducted at 10:00 
a.m. on February 14, 1991 at the Archdale Build- 
ing, Public Hearing Room - Ground Floor, 512 
North Salisbury Street, Raleigh, NC 27604-1 159. 

y^omment Procedures: Any interested person 
may present his; her comments by oral presentation 
or by submitting a written statement. Persons 
wishing to make oral presentations should contact 
Marilyn Brothers, Division of Mental Health, De- 
velopmental Disabilities and Substance Abuse 
Services, 325 N. Salisbury St., Raleigh, NC 
27603, (919) 733-4774 by February 13, 1991. 
The hearing record will remain open for written 
comments from January 15, 1991 through Febru- 
ary 13, 1991 . Written comments must be sent to 
the above address and must state the rule(s) to 
which the comments are addressed. Fiscal infor- 
mation on these Rules is also available from the 
same address. 

CHAPTER 14 - MENTAL HEALTH: GENERAL 

SUBCHAPTER 14K - CORE LICENSURE RULES 

FOR MENTAL HE.\LTH: MENTAL 

RETARDATION AND OTHER 

DEVELOPMENTAL DISABILITIES: AND 

SUBSTANCE ABUSE FACILITIES 

SECTION .0300 - FACILITY AND PROGRAM 
MANAGEMENT 



.0325 INDOOR LIVING SPACE FOR 
RESIDENTIAL AND RESPITE 
FACILITIES (REPEALED) 

Statutory Authority G.S. 122C-26; 143B-147. 

SECTION .0400 - PHYSICAL PLANT 

.0408 INDOOR LIVING SPACE: 

RESIDENTIAL/24-HOUR RESPITE 
FACILITIES 

(a) Except fof thosa mental Mental health, 
mental retardation or other developmental dioa 
bihty disabilities or substance abuse facilities h- 
censed as ef the offoctivo 4ate ef those Pi.uleo, 
rooidontial prior to 10/01/88 shall satisfy the 
minimum square footage requirements in effect 
at the time of the facility's initial licensure. Res- 
idential facilities licensed since that date, except 
for Residential Therapeutic (Habilitative) Camps 
for Children and Adolescents which shall meet 
the requirements 



ecified in 10 NCAC 140 



52 

.0302, shall meet the foUowLng indoor space re- 
quirements: 

(1) Client bedrooms shall have at least 100 
square feet for single occupancy and 80 
square feet per client when more than one 
client occupies the bedroom. 

(2) Where bassinets and portable cribs for in- 
fants are used, a minimum of 40 square feet 
per bassinet or portable crib shall be pro- 
vided. 

(3) Except fof specialia o 4 community rocidon 
tiai centers fof individuals witb mental je- 
tajdation &f other dc i 'elopmontal disabilities. 
He No more than two clients may share an 
individual bedroom regardless of bedroom 
size, except for Specialized Community 
Residential Centers for Individuals with 
Mental Retardation or other Developmental 
Disabilities which shall meet the require- 
ments specified m 10 NCAC 14M .0104. 

(4) In facilities with ovemi.ght accommo- 
dations for persons other than clients, with 
the exception of therapeutic homes for chil- 
dren and adolescents, such accommodations 
shall be separate from client bedrooms. 

(5) No client shall be permitted to sleep in an 
unfmished basement or in an attic. 

(6) In a residential facility licensed under resi- 
dential building code standards and without 
elevators, bedrooms above or below the 
ground level shall be used only for individ- 
uals who are capable of moving up and 
down the steps independently. 

(7) .Minimum furnishings for client bedrooms 
shall include a separate bed, bedding, pillow, 
bedside table, and storage for personal be- 
loneines for each client. 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



1219 



PROPOSED RULES 



(8) Only clients of the same sex may share a 
bedroom except for children age six or be- 
low and for married couples. 

(9) Children and adolescents shall not share a 
bedroom with an adult. 

( 1 1) I f4^ At least one full bathroom for each five 
or fewer persons including staff of the facility 
and their family shall be included in each 
facility. 

( 1 1) Fach facility, except for a pri\'ate home 
pro\'ider, shall ha\e a reception area for cli- 
ents and yisitors and pri\'ate space for inter- 
yiews and conferences with clients. 

( 12) The Hying room, den, kitchen and dining 
space shall be a\ailable to meet the clients' 
needs. 



( 13) Hach facility shall ha\'e indoor space for 
group actnities and social gathenngs. 

(14) The area in which therapeutic and 
habilitatiye actiyities are routmely conducted 
shall be separate from sleepmg areas. 

(44 b'xir . tmg otaicluroL' i iilrL'ady liconood a4- Ae 
tim e t*f Ai* adoption ef tho '^ L' Ruk",: . - jhall c . atii . fy 
tkw minimum ; . quur e footag e roquiromontu m ei- 
fe€4- at- t4%e tim e ©f tht» facilits i initial hc e nsur e . 



For the purpose of determining the working 
capital or net worth of any HMO seeking ad- 
mission to do business in this State and of any 
H.MO admitted to do business in this State, ad- 
mitted assets for an HMO do not include: 

(1) prepaid expenses; 

(2) intangible assets; 

(3) the depreciated cost of furniture and 
equipment, except furniture and equipment 
directly used in providing medical services 
and electronic data processing equipment; 

(4) amounts receivable from affiliates that are 
outstanding for over 90 days; 

(5) amounts receivable from affiliates that do 
not have immediate resources to repay the 
debts; nor 

(6) an>" other assets determined by the Com- 
missioner to be of an ilhquid nature. 



Statutory Authoritv 
5S-67-I10(b). 



G.S. 58-2-40(1): 58-67-20; 



TITLE 15.A - DEPARTMENT OF 

EM IRONMENT. HEALTH, AND 

NATURAL RESOURCES 



Statutoiy Authority G.S. I22C-26: I43B-I47. 

TITLE 1 1 - DEPARTMENT OF 
INSURANCE 



1\ otice is hereby given in accordance with G.S. 
150B-I2 that the N.C. Department of Insurance 
intends to adopt nde(s) cited as II NCAC 14 
.0308. 

1 he proposed effective date of this action is May 
I. 1991. 

1 he public hearing will be conducted at 10:00 
a.m. on Febt-uary 14, 1991 at the N.C. Depart- 
ment of Insurance. 430 A'. Salisbury Street, Dobbs 
Building. Raleigh, N.C. 27611. 

y^omment Procedures: Written comments mav 
be sent to L.W. Cannady, P.O. Box 26387, 
Raleigh. NC 2761 1. Oral presentations may be 
made at the public hearing. Anyone having 
questions should call L.W. Cannady at (919) 
733-5633 or Ellen Sprcnkel at (919 j -^33-4700. 

CH.\PTKR 14 - .ADMISSION RFQLIREMENTS 



No 



otice is hereby given in accordance with G.S. 
I50B-12 that the North Carolina Wildlife Re- 
sources Commission intends to adopt nde(s) cited 
as 15A NCAC I OF .0364. 

1 he proposed effective date of this action is May 
I. 1991. 

1 he public hearing will be conducted at 10:00 
a.m. on February 18, 1991 at Room 386, Archdale 
Building, 512 N. Salisbury Street, Raleigh, .\C 
27604-1188. 



Co 



omment Procedures: Interested persons may 
present their views either orally or in writing at the 
hearing. In addition, the record of hearing will 
be open for receipt of written comments from 
February 1 , 1991 to March 5, 1991. Such written 
comments must be deVn-ered or mailed to the N.C. 
Wildlife Resources Commission. 512 N. Salisbwy 
Street, Raleigh, NC 2^604-1188. 

CH.\PTER 10 - WILDLIFE RESOLRCES .\ND 
\\ ATER SAFETY 

SLBCHAPTER lOF - MOTORBO.ATS .\ND 
\\ ATER S.\FETY 



SECTION .0300 - IIE.ALTH M.\INTEN.\NCE 
ORG.\NIZ.\TIONS 



SECTION .0300 - LOCAL WATER S.\FETV 
REGULATIONS 



.0308 AD.MITTED ASSETS: HMO 



.0364 GREENSBORO 



1220 



5:20 NORTH CAROLINA REGISTER January 15, I99I 



PROPOSED RULES 



(a) Regulated Area. This Rule applies to the 
waters of Lake Brandt, Lake Higgins, Lake 
Townsend (Greensboro Municipal Reservoirs) 
within the city limits of Greensboro in Guilford 
County. 

(b) Speed Limit. No person shall operate a 
vessel at greater than no wake speed within 50 
yards of any public boat launching ramp, bridge 
or pier operated by the City of Greensboro for 
public use. 

(c) Restricted Zones. No person operating or 
responsible for the operation of any vessel should 
permit the same to enter any restricted zone 
marked to prevent entry by vessels. 

(d) Placement and Maintenance of Markers. 
The Board of Commissioners of Guilford 
County is designated a suitable agency for place- 
ment and maintenance of markers implementing 
this Rule. 

Statutory Authority G.S. 75A-3; 75A-I5. 



IS otice is hereby given in accordance with G.S. 
1 SOB- 1 2 that the State Registrar intends to amend 
rule(s) cited as ISA NCAC I9H .0601, .1001. 
and .1301. 

1 he proposed effective date of this action is May 
I, 1991. 

1 he public hearing will be conducted at 10:30 
a.m. on February 18, 1991 at the Norton Board 
Room, 6th Floor Cooper Memorial Bldg., 22S N. 
McDowell Street, Raleigh, N.C. 

(comment Procedures: Any person may request 
copies of the proposed rules by contacting John 
P. Barkley, DEHNR, P.O. Box 27687, Raleigh, 
NC 27611-7687, (919) 733-7247. Written com- 
ments on these Rules may be sent to Mr. Barkley 
at the above address or submitted at the public 
hearing. If you desire to .speak at the public 
hearing, notify Mr. Barkley at least 3 days prior 
to the public hearing. 

CHAPTER 19 - HEALTH: EPIDEMIOLOGY 
SUBCHAPTER 19H - VITAL RECORDS 
SECTION .0600 - CERTIFIED COPIES 

.0601 BIRTH CERTIFICATES 

(a) There shall be three forms of oortifiod copies 
of birth certificates; 



(1) a photocopy of the original record ex- 
cluding medical and health related infor- 
mation with facsimile of the signature of 
the State Registrar and raised seal and 
date issued; and 

(2) a typed copy prepared on a form printed 
on safety paper with facsimile of the sig- 
nature of the State Registrar and raised 
seal; ¥b# the form shall provide at least 
the foUowing items of information: 

(A) name and sex of child; 

(B) date and place of birth; 

(C) names, ages (at time of birth), and 
birthplaces of father and mother; 

(D) date filed with local registrar; 

(E) certificate number; 

(F) date of issue; and 

(G) items amended and date of amendment; 
and 

(3) a typed wallet-size card with facsimile of 
the signature of the State Registrar pro- 
viding as a minimum the following items 
of information: 

(A) name and sex of child; 

(B) date and place of birth; 

(C) date filed with local registrar; 

(D) certificate number; 

(E) date of issue; and 

(F) changes of names by court order noted 
on back for persons older than 15 years 
unless good cause is shown for deleting 
the notation. 

(b) A wallet-size card shall be issued when 
specifically requested. »f whon tb» birth cert if 

child as^ tb# roquost dooo He4- indicato a purpooo 
which tb© esf4 would Ret- Gor i ^e. 

(c) A typed copy shall be issued when specif- 
ically requested, when the original certiificate 
cannot be photocopied, when the original has 
been corrected or amended, or when the record 
is that of an adopted or legitimated person. aft4 
a wallot oiao eafd is ftet aocoptablo. 

(d) A photocopy shall be issued when specif- 
ically requested or whenever it is most conven- 
ient except in cases in which a eetf4 e* typed copy 
is required. 

Statutory Authority G.S. 130A-92(7). 

SECTION .1000 - NEW CERTIFICATES 

.1001 NEW CERTIFICATES OF BIRTHS 
FOLLOWING ADOPTIONS 

(a) When a new certificate of birth is prepared 
by the State Registrar as prescribed in G.S. 48-29, 
all copies of the original certificate and all other 
information concerning the original certificate in 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



1221 



PROPOSED RULES 



the possession of any register of deeds shall be 
forwarded to the State Registrar, who shall file 
them in accordance with the provisions of G.S. 
48-29. In the event such data have been com- 
puterized or otherwise automated, a paper copy 
of the pertinent data shall be prepared and sent 
to the State Registrar. The automated data shall 
then be removed from the mde.x or otherwise 
rendered unusable in a manner approved by the 
State Registrar. 

(b) The record pertaining to an adoption shall 
not be sealed until after the adopting parents are 
furnished a fuU certified copy or until they or 
their legal representatives are notified of the in- 
formation entered on the new certificate, so that 
errors can be identified or corrected prior to the 
sealing of the tile. Mter the file is sealed, cor- 
rections and amendments shall be made in ac- 
cordance with same rules which pertain to birth 
records of non-adopted persons, except that a 
copy of the adoption order wiU be required to 
correct the name. 

Statuton Authority G.S. 4S-29(c>; 130A-92(7); 
130A-liS(ej. 

SECTION .1300 - ACCESS TO RECORDS 

.1301 INFORM.\TION NEEDED FOR 
LOC.\TlNG RECORDS 

A person wishing to obtain a copy of a vital 
record or obtain a copy therefrom shall be re- 
quired to furnish at least the minimum amount 
of information needed to locate the record. The 
foUowing minimum amount of information is 
required to locate a record: » a* folio wo: 

(1) Births. Registrant's name, father's name 
(if bom in wedlock), mother's fuU maiden 
name, appro.ximate date of birth ©f and 
place of birth; 

(2) Deaths. Name of deceased, appro.ximate 
age, approximate date of death and place of 
death; 

(3) Marriages. Name of bride or groom, ap- 
proximate date of marriage and place of 
marriage; 

(4) Di\ orces. Name of plaintiff or defendant, 
approximate date of divorce and place of 
divorce. 

Statutory Authority G.S. l30A-92(7). 

TITLE 21 - OCCUPATIONAL LICENSING 
BOARD 



1\ otice is hereby given in accordance with G.S. 
I SOB- 1 2 that the Board of Medical Examiners of 



the State of North Carolina intends to amend 
rule(s) cited as 21 SCAC 32L .0001, .0005, and 
.0009. 

1 he proposed effective date of this action is May 
1, 1991. 

1 he public hearing will be conducted at 6:30 
p.m. on March 13, 1 99 1 at the Marriott RTF, 
4700 Guardian Drive, Morrisx'ille, .\'.C. 

K^omment Procedures: Persons interested may 
present written or oral statements relevant to the 
actions proposed at a hearing to be held as indi- 
cated above. Written statements not presented at 
the hearing should be directed before March 1, 
1991 , to the following address: Administrative 
Procedures. .\'C Board of .Medical Examiners, 
1313 .\a\-alio Dri\-e, Raleigh, .\C 27609. 

CH.\PTER 32 - BO.ARD OF MEDICAL 
EX.\MINERS 

SLBCH.M'TER 32L - .APPROVAL OF 
PHYSICIAN ASSISTANTS 

.0001 DEFINITIONS 

The following definitions apply to this Sub- 
chapter: 

(1) "Physician Assistant or PA" means an 
auxiliary, paramedical person who functions 
at the direction of or under the supervision 
of a physician licensed by the Board and 
who performs tasks traditionally performed 
by the physician, such as history taking, 
physical examination, diagnosis, and treat- 
ment. 

(2) "Physician Assistant Applicant" means the 
individual upon whose behalf an application 
is submitted who may function before ap- 
proval by the Board in the same manner in 
which he functioned as a student under strict 
supervision as outlined in Rule .0002 of this 
Subchapter. 

(3) "Supervision" means the physician's func- 
tion of overseeing, managing, and directing 
the medical acts performed by the PA as 
outlined in Rule .0009 of this Subchapter. 

(4) "Primap," Supervising Physician" means the 
physician who, by signing the application to 
the Board, accepts fuU medical administra- 
tive responsibility for the PA's medical ac- 
tivities and conduct at all times whether he 
personally is providing supervision or 
super\"ision is being provided by a Back-up 
Supervising Physician. The Primary Super- 
vising Physician shall assume total responsi- 
bility to assure the Board that the PA is 



1222 



5:20 SORTH CAROLINA REGISTER January 15, 1991 



PROPOSED RULES 



sufficiently qualified by education and train- 
ing to perform all medical acts required of 
the PA and shall assume total responsibility 
for the PA's performance in the particular 
field or fields in which the PA is expected to 
perform medical acts. 

(5) "Back-up Supervising Physician" means the 
physician who, by signing the application to 
the Board, accepts the responsibihty to be 
available to supervise the PA's activities in 
the absence of the Primary Supervising 
Physician only in the practice sites Usted in 
the apphcation approved by the Board. The 
Back-up Supervising Physician is responsi- 
ble for the activities of the PA only when 
he is providing supervision. 

(6) "Formulary" means the document which 
lists generic categories of drugs to be pre- 
scribed, ordered, or dispensed by physician 
extenders under written standing orders from 
the supervising physician for patient care in 
approved practice sites. 

(7) "Approved practice sites" means only those 
practice sites specifically Usted in the ap- 
proved application on file in the Board's of- 
fice in which the PA may legally perform 
medical acts. 

Statutory Authority G.S. 90-18(13); 90-18. 1. 

.0005 PRESCRIBING PRIVILEGES 

(a) The PA Applicant and the supervising 
physicians shall acknowledge in the application 
that they are famihar with laws and rules of the 
Board regarding prescribing; and shall agree to 
comply with these laws and rules by incorporat- 
ing the laws and rules, including the Formulary, 
into their written standing orders. 

(b) The generic categories Usted in the 
Formulary are based on the American Hospital 
Formulary Service pubUshed by the American 
Society of Hospital Pharmacists. The Formulary 
is adopted by reference by the Board as a part of 
this Rule in accordance with provisions of G.S. 
1 SOB- 14(c). 

(c) The prescribing stipulations contained in 
these rules and in the Formulary apply to writing 
prescriptions, ordering the administration of 
medications in out-patient and inpatient settings, 
and dispensing medications. Approval to dis- 
pense must be obtained from the Board of 
Pharmacy. 

(d) Prescribing stipulations are as follows; 
(1) Controlled Substances: 

(A) No controlled substances (Schedules 2, 
2N, 3, 3N, 4, 5) defmed by the State and 
Federal Controlled Substances Acts may 
be prescribed, ordered, or dispensed. 



(B) Verbal orders given to the PA by the 
supervising physician for administration 
of a controUed substance to a specific pa- 
tient may be entered into the patient chart 
by the PA just as an RN may transcribe 
a physician's verbal order into a patient 
chart. 
(5) Parenteral Medications - Ne parenteral 
proparationG f»ay h% proocribod, ordered, 
disponood, ef administered unless under 
the ord e r »f the sup e n i 'ising physician as 
set forth ift Subparagraph (3)(B) ef this 
Ptule; w4tb the foUovving e xc e ptions: 

(A) Insulin; 

1^ Immunkations (DPT, MMR, WS^ 

{Gf Tetanus toxoid, ©¥7 ef hyperimmune 
s e rum; 

(©) Epinephrine; 

fg^ Bonadr>rl. 

(2) Parenteral Medications - No parenteral 
preparations may be prescribed, ordered, 
dispensed, or administered unless under 
the order of the supervising physician as 
set forth in Paragraph (d)(3)(B) of this 
Rule with the exception of those 
medications listed on the Formulary as 
allowed. 

(3) Excluded Drugs: 

(A) Any pure form or combination of the 
generic classes of drugs Usted in the 
Formulary may be prescribed, ordered, or 
dispensed, unless the drug or class of drug 
is listed as excluded from the Formulary. 

(&) Drugs excluded by- the Formular>', e^t- 
eept oontroUod substanoos, may be pfe- 
Gcribod by the PA only upon opocifio 
written ©f verbal orders from the super 

V I U 11 1 C. Lfll T LJU-IUIl r^TT CT U IJ V^ II HJ LHJ. Li^_ III iL^l 1 \JTT 

before the proscription ef order is issu e d 
by the PAr Such a proscription et order 
must be signed by the PA with a notation 

sup e P i ising physician. P©f example: 
Mafy Smith, PA7 »» order ef John Do e , 

M.©r 

(B) The PA may prescribe an excluded drug 
or class of drug only as foUows: 

(i) after the patient has been previously 
seen by the supervising physician for 
initial treatment of that illness and a 
written order has been entered into the 
chart by the physician for future treat- 
ment by the PA; or 

(ii) upon a specific written or verbal order 
obtained from the supervising physician 
before the prescription or order is issued 
by the PA. 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



1223 



PROPOSED RULES 



(C) Such a prescription or order written as 
described in Paragraph (d)(3)(B) of this 
Rule must be signed by the PA with a 
notation that it is issued on the specific 
order of the supervising physician. For 
example: Mary' Smith, PA, on order of 
John Doe, MP. 

(4) Refills - A prescription may not indicate 
a refill with the exception of birth control 
medications which may be issued for a 
period not to exceed one year. 

(5) Dosage Units - Amount of drug pre- 
scribed, ordered, or dispensed can be no 
more than 100 dosage units or a one 
month supply with the exception of birth 
control medications which may be issued 
for a period not to exceed one year. 

(6) Prescription Notations - Every pre- 
scription must be noted on the patient's 
chart. A second prescription for the same 
medication may be authorized by tele- 
phone by the PA and must be entered on 
the patient's chart and countersigned by 
the super\ising physician within the spec- 
ified countersigning time approved by the 
Board. 

(7) Prescribing Number - A prescribing num- 
ber is assigned by the Board to a PA upon 
approval by the Board. This number 
must appear on all prescriptions issued by 
the PA. The prescribing number is used 
as the PA's Approval Number. 

(8) Prescription Blank Format - All pre- 
scriptions issued by a PA ohould shall 
contain the name and telephone number 
of the supervising physician; the name, 
practice address, telephone number, and 
prescribing number of the PA, as well as 
all information required by law. A sug- 
gested prescription format is included in 
the application packet. 

(9) Pre-signed Prescription Blanl^s - The 
supervising physician shall not leave pre- 
signed prescription forms for use by the 
PA. 

Statutorj' Authority G.S. 90-18(13): 90-18. 1: 
I SOB- 14(c). 

.0009 SUPERVISION OF A P.\ 

Supervision shall be provided by the responsible 
physician as follows: 
(1) Availability: 
(a) The supervising physician shall be avail- 
able for direct communications by radio, 
telephone, or telecommunications. 



(b) The supervising physician shall be avail- 
able on a regularly scheduled basis for re- 
ferrals of patients from the PA. 

1^ A PA shall rofor a patient to another 
h e alth provider other than- a» approved 
c i uper . ioing physician efiiy ©» tbe order 
ef aft approv e d sup e raising phyoician. 

(2) Written Standing Orders: 

(a) The supervising physician shall provide in 
each practice location, for use by the PA 
and for referral by other personnel, written 
standing orders and drug protocols to 
cover most commonly encountered prob- 
lems in the practice setting. 

(b) The written standing orders shall include 
a predetermined plan for emergency ser- 
vices. 

(c) The PA shall refer a patient to another 
physician other than an approved super- 
vising physician only in accordance with 
written standmg orders. 

(3) Countersigning: 

(a) The time interval between the PA's con- 
tact with the patient and chart review and 
countersigning by the supervising physi- 
cian shall be 72 hours. 

(b) A longer countersigning time interval may 
be considered by the Board upon specific 
request. The request should explain the 
practice circumstances which necessitate 
the longer countersigning interval. 

(c) All entries by a PA into patient charts in 
all approved practice locations must be 
countersigned by the supervising physi- 
cian. Entries include but are not limited 
to: progress notes; treatment rendered; 
tests or procedures ordered; and notations 
of prescriptions or orders, and drugs dis- 
pensed or administered. 

(4) Supervision Arrangements: 

(a) If the PA is to perform duties away from 
the supervising physician, the apphcation 
must clearly specify the circumstances 
which would justify this action and the 
supervisory arrangements estabUshed to 
protect the patient. 

(b) Details must be submitted describing dis- 
tance, time, topography, physical charac- 
teristics, and communication ability 
between the PA and the supervising phy- 
sician. 

(5) Supervising Physicians: 

(a) A physician in a graduate medical educa- 
tion program, whether fully licensed or 
holding only a resident's training license, 
cannot be named as a supervising physi- 
cian. 



1224 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



PROPOSED RULES 



(b) A physician in a graduate medical educa- 
tion program who is also practicing in a 
non-training situation may supervise phy- 
sician assistants in the non-training situ- 
ation if fully licensed. ■ 

(c) AH physicians who may supervise the PA 
in any marmer must be approved by the 
Board before PA supervision occurs. 



(6) The PA must be prepared to demonstrate 
upon request to a member of the Board, or 
its delegates, the ability to perform the 
medical acts assigned by the supervising 
physician. 

Statutory Authority G.S. 90-18(13). 



5:20 NORTH CAROLINA REGISTER January 15, 1 99 1 



1225 



FINAL RULES 



1 he List of Rules Codified is a listing of rules that were filed to be effecti\'e in the month indicated. 

IXules filed for publication in the XCAC may not be identical to the proposed text published pre- 
viously in the Register. Rules filed with changes are noted with ** Amended, ** Adopted. Please 
contact this office if you have any questions. 

/adopted rules filed by the Departments of Correction, Revenue and Transportation are published 
in this section. These departments are not subject to the provisions ofG.S. 150B. Article 2 requiring 
publication in the S'.C. Register of proposed rules. 

Upon request from the adopting agency, the te.xt of rules will be published in this section. 

1 unctuation. typographical and technical changes to ndes are incorporated into the List of Rules 
Codified and are noted as * Correction. These changes do not change the effective date of the nde. 



TITLE 17 
DEPARTMENT OF REVENLT: 

CHAPTER 8 - INTANGIBLES TAX DIMSION 

SECTION .0400 - ACCOL^STS RECEFV ABLE 

.0403 ACCOL^NTS RECEIVABLE SI BJECT TO TAX.\TION 

Accounts receivable which are subject to intangibles tax include, but are not limited to, the following: 
(1) trade accounts, open book accounts and charge accounts; 
(2j re\olving type charge accounts; 

(3) salaries and commissions receivable; 

(4) bonuses receivable if such bonuses were declared or were otherwise determinable as of the valu- 
ation date; 

(5) dividends receivable; 

(6) tax refunds which have been approved for payment; 

(7) dealer resen'es and finance resen.'es due from banks, fmance companies, etc; 

(8) the total amount of periodic or progress billings (excluding retainage) to which a contractor is 
entitled under terms of contracts in progress; 

(9) accounts receivable of all taxpayers whether they are operating on a cash or an accrual basis; 

(10) accounts receivable of professional associations and professional persons when such accounts 
represent amounts owing to them for professional ser%'ices; 

(11) all inter-company recei\ables which are not evidenced by a note; 

(12) accrued rent which is due or otherwise determinable as of the \aluation date; 

(13) royalties which have become due or which are otherwise determinable as of the valuation date; 

(14) patronage dividends; 

(15) accounts recci\able which have a business, commercial or taxable situs in North CaroUna, even 
though such accounts may be owned by a nonresident or foreign corporation. 

History .\ote: Statuton Authority G.S. / 05-20 1; 105-262; 
Eff February /, 1976; 
.Amended Eff Febmary I. 1091: .August I. 1986: December I. I9S5: December I. 1983. 

.0404 DEDUCTIBLE ACCOLATS PAYABLE 

.Accounts payable which may be deducted from accounts receivable include, but are not limited to, 
the following: 



1226 5:20 SORTH CAROLINA REGISTER January 15, 1991 



FINAL RULES 



(1) trade accounts, charge accounts and certain accrued expenses not evidenced by a note or condi- 
tional sales contract; 

(2) accrued salaries, wages and commissions payable; 

(3) accrued dividends payable; 

(4) accrued bonuses payable provided such bonuses were declared or were otherwise determinable 
as of the valuation date; 

(5) federal and state withholding taxes and that portion of social security taxes withheld from em- 
ployees; 

(6) the amount of periodic or progress billings (excluding retainage) payable to a contractor under 
terms of a contract in progress; 

(7) amounts due for professional services; 

(8) all inter-company payables which are not evidenced by a note; 

(9) accrued rent payable or otherwise determinable as of the valuation date; 

( 10) royalties payable or otherwise determinable as of the valuation date; 

(11) certain short term notes payable may qualify as accounts payable provided they were issued or 
made for a term of one year or less and are not deducted as notes payable under G.S. 105-202. 
(This deduction does not apply to notes "payable on demand" or the current portion of long term 
debt.); 

(12) amounts due and payable to pension and profit-sharing trusts which qualify as exempt from state 
income tax; 

(13) in the case of banks, checking account and demand saving account habilities are deductible as 
accounts payable. 

History Note: Statutory Authority G.S. 105-201; 105-262; 
Eff. February I, 1976; 
Amended Eff. February I, 1991; August 1, 1986; December 1, 1985; December I, 1983. 

SECTION .0500 NOTES: BONDS AND OTHER EVIDENCES OF DEBT 

.0504 NOTES: BONDS: ETC. SUBJECT TO TAXATION 

Notes, bonds and other evidences of debt which are subject to intangibles tax include, but are not 
limited to, the following: 

(1) personal and business notes receivable; 

(2) mortgage notes receivable; 

(3) commercial paper; 

(4) conditional sales contracts (written agreements whereby title to the property remains with the 
seller until the goods are paid for); 

(5) lease agreements with "option to purchase" which are classified as conditional sales contracts for 
sales tax purposes; 

(6) notes due from affiliated companies; 

(7) accrued interest receivable from notes, bonds and other evidences of debt; 

(8) participation certificates; 

(9) bonds and debentures of both domestic and foreign corporations; 

(10) church bonds; 

(11) bonds and evidences of debt of other states and their political subdivisions; 

(12) bonds, debentures and capital notes (not certificates of deposit) issued by commercial banks; 

(13) bonds and notes of the Federal National Mortgage Association; 

(14) bonds of public housing authorities organized under laws of other states; 

(15) sales or gift agreements whereby the seller or donor has only an irrevocable right to receive in- 
come on an "annuity" basis; Actual value of such agreements should be determined in the same 
manner as a beneficial interest in a foreign trust; 

(16) investment contracts and accumulation plans; 

(17) "Repurchase Agreements" issued by fmancial institutions; 

(18) notes, bonds, participation certificates (including GNMA pass-through and pooled income cer- 
tificates) which are the obligations of nonexempt quasi governmental agencies, commercial banks 
or other mortgage lenders even though the payment of principal and interest is guaranteed by the 
U.S. government; 

(19) land sales contracts; 



5:20 NORTH CAROLINA REGISTER January 15, 1991 1227 



FINAL RULES 



(20) amounts due from a commercial factor as a result of the sale of accounts receivable pursuant to 
a factoring agreement; 

(21) receivables of banks under retail credit card plans. 

History Note: Statutory Authoritv G.S. 105-202; 105-262; 
Eff. February I, 1976; 
Amended Eff. February I. 1991; August J, 1986; December I, 1985; March 1, 1982. 

SECTION .0600 - SHARES OE STOCK 

.0604 SHARES AND UNITS SUBJECT TO TAXATION 

Securities which are subject to intangibles tax under this Section include, but are not limited to, the 
following: 

(1) capital stock, common stock and preferred stock of both domestic and foreign corporations; 

(2) shares and units held in brokerage accounts, including those purchased on margin; 

(3) unregistered stock, restricted stock, letter stock and "closely held" stock which is not actively 
traded; 

(4) shares or units of ownership of mutual funds, investment trusts and investment funds. 

Note: The value of such shares or units may be reduced in whole or in part by reason of the ex- 
empt status of "direct obligations" of the United States Government and "direct obligations" of 
the State of North Carolina and its political subdivisions held in the fund or trust as of December 
31. For further information, see Rule .0605(5) of this Section; 

(5) shares of stock in banks (including national banks) located outside North Carolina; 

(6) shares of stock in holding companies, including bank and insurance holding companies; 

(7) stocks and units held by trustees or guardians (reportable under the name of the beneficiary); 

(8) stocks and units held by executors or administrators of estates (reportable under the name of the 
estate); 

(9) stocks and units owned by minor children (reportable under the minor's name in care of the 
parent or gUiU'dian); 

(10) stocks and units owned by investment clubs (reportable under the name of the investment club); 

(11) stocks and units acquired (by purchase, gift, inheritance or any other means) as of December 
31 even if the stock certificates have not been received and are not in the taxpayer's possession as 
of December 31; 

(12) shares and units owned by or registered to residents of North Carolina on December 31 even 
though the stock certificates may be physically located in another state; 

(13) units of ownership of "money market" funds and similar funds including those funds where the 
owner is authorized to issue checks and drafts against the funds as a means of disposing of units. 

History Note: Statutory Authority G.S. 105-203; 105-262; 
Eff February I. 1976; 
Amended Eff February I, 1991; December 1, 1983: March 1, 1982; October 23, 1977. 

.0605 EXEMPTIONS 

In addition to the items specified in G.S. 105-203, the following are exempt from taxation: 

(1) Stock warrants, stock options and stock purchase rights are not taxable. 

(2) Shares and units sold on or prior to December 31 are not taxable. In the case of certain invest- 
ment funds where the owner of units is authorized to dispose of such units by issuing checks or 
drafts, a sale may be recognized if the taxpayer can provide evidence that checks or drafts were 
actually issued in good faith for value or credit on or prior to December 31. 

(3) Units of ownership in an investment trust which on December 31 is composed entirely of obli- 
gations of the United States and North Carolina, 80 percent of which are obligations of North 
Carolina or its political subdivisions, are not taxable. In order for tliis exemption to apply, the 
trust must certify to the intangibles tax division by December 31 of the year for which the ex- 
emption apphes that the requirements for exemption have been met; and then must furnish the 
following information within ninety days: 

(a) a prospectus or complete description of the trust fund; 

(b) the name and series number of the trust fund; 

(c) the name, description and value of the obligations held in the corpus of the trust as of December 
31. 



1228 5:20 NORTH CAROLINA REGISTER January 15, 1991 



FINAL RULES 



(4) Interest in a partnership (including a limited partnership) is not taxable; 

(5) The "share value" of a mutual fund, investment trust or investment fund may be reduced by a 
percentage equal to the ratio of "direct obligations" of the United States Government and "direct 
obligations" of the State of North Carolina and its political subdivisions held in the fund or trust 
as of December 31. (Example: If, as of December 31, 35 f)ercent of the assets of a mutual fund 
are investments in United States Treasury Notes, then the share value of the mutual fund can be 
reduced by 35 percent.) 

Important: Obligations that are merely backed or guaranteed by the United States Government (i.e. 
FNMA's, GNMA mortgaged-backed securities, repurchase agreements, etc.) are not considered 
"direct obligations" of the United States and, therefore, do not qualify in determining a percentage 
reduction in the share value of a mutual fund or investment trust. A taxpayer must, upon request, 
be able to provide information to support any percentage reduction in the share value of a mutual 
fund or investment trust. This information should be available through the mutual fund or in- 
vestment trust. 

History Note: Statutory Authority G.S. 105-203; 105-262; 
Eff. February I, 1976; 
Amended Eff. February I. 1991; December I, 1985; December I, 1983; March f 1982. 



5:20 NORTH CAROLINA REGISTER January 15, 1991 1229 



FINAL RULES 



NORTH CAROLINA ADMIN ISTRATAT CODE 

LIST OF RULES CODIFIED 

JANUARY 1991 



AGENCY 



ACTION TAKEN 



DEPARTMENT OF AGRICULTURE 



NCAC 



20B 
34 



43L 
48A 



.0320 



.0413 

.0102 

.0301 - .0302 

.0304 

.0305 - .0306 

.0310 

.0313 

.0317 

.0322 

.0323 

.0326 

.0505 

.0506 

.0605 

.0904 

.1004 

.1102 

.0304 

.0601 

.0605 

.0611 

.1005 

.1602 



.1103 

.0305 



** .\mended 
/Vmended 
Amended 
Repealed 
Amended 
♦* .\mended 
** Amended 
** Amended 
Repealed 
Amended 
** Amended 
** ,\mended 
♦* Adopted 
** /Vmended 
Amended 
*♦ Amended 
** iAjnended 
** iAjnended 
** Amended 
** .^mended 
Amended 
Amended 
Amended 



DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT 



NCAC 



18 .0309 



OFFICES OF TtlE GOVERNOR/LIEUTENANT GOVERNOR 

9 NCAC 2B Executive Order Number 128 

Eff. November 1, 1990 

DEPARTMENT OF HU\L\N RESOURCES 



Temp. Adopted 
Expires 06-02-91 



10 



NCAC 



3H 


.0505 




3U 


.0206 
.0511 






.0601 - 


.0603 




.0604 






.0705 






.1615 






.1701 - 


.1702 




.1716- 


.1717 




.2101 





* Correction 

** Adopted 
** .Amended 
** .-Vmended 
** Adopted 
** Amended 
** ,\mended 
** .\mended 
** .-Vmended 
** ^\mended 



12W 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



FINAL RULES 



3V .0101 


Adopted 


.0201 - .0204 


** Adopted 


.0301 - .0302 


** Adopted 


22G .0802 


** Amended 


42D .1501 


Amended 


DEPARTMENT OF INSURANCE 




11 NCAC 6A .0702 


* Correction 


.0801 


* Correction 


8 .0708 


Amended 


llA .0502 


* Correction 


.0504 


* Correction 


.0507 


* Correction 


IIB .0607 


♦ * Adopted 


.0610 


** Adopted 


12 .0824 - .0825 


* Correction 


DEPARTMENT OF JUSTICE 




12 NCAC lOB .0103 


Amended 


.0205 - .0206 


Adopted 


.0207 


** Amended 


.0208 


** Adopted 


.0304 


Amended 


.0307 


Amended 


.0308 


Repealed 


.0401 - .0403 


Amended 


.0407 


** Adopted 


.0408 


** Amended 


.0409 


Amended 


.0503 


Amended 


.0505 


** Amended 


.0601 


** Amended 


.0603 


Amended 


.0605 


Amended 


.0705 


Amended 


.0908 


** Amended 


.0909 


Amended 


.1002- .1003 


Amended 


.1006 


Amended 


.1105 


Amended 


.1203 


Amended 


.1206 


Amended 


.2102 


Amended 


.2104 


** yVmended 


DEPARTMENT OF ENVIRONMENT, HEALTH, 


AND NATURAL RESOURCES 


15A NCAC 2D .0525 


Amended 


2J .0002 - .0003 


** Amended 


2K .0104 


Amended 


.0222 - .0223 


** Adopted 


2N .0101 - .0104 


** Adopted 


.0201 - .0203 


** Adopted 


.0301 - .0303 


** Adopted 


.0401 - .0405 


** Adopted 


.0501 - .0506 


*♦ Adopted 


.0601 - .0604 


** Adopted 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



1231 





FINAL RULES 




.0701 - 


.0708 


** Adopted 


.0801 - 


.0805 


** Adopted 


3A .0001 - 


.0002 


Repealed 


.0004 - 


.0005 


Repealed 


3B .0101 - 


.0103 


Repealed 


.0105 




Repealed 


.0107- 


.0109 


Repealed 


.0111 




Repealed 


.0113- 


.0117 


Repealed 


.0201 - 


.0203 


Repealed 


.0205 - 


.0207 


Repealed 


.0301 - 


.0302 


Repealed 


.0304 - 


.0310 


Repealed 


.0401 - 


.0404 


Repealed 


.0408 - 


.0410 


Repealed 


.0413 




Repealed 


.0501 - 


.0505 


Repealed 


.0602 




Repealed 


.0701 - 


.0702 


Repealed 


.0801 - 


.0802 


Repealed 


.0901 - 


.0907 


Repealed 


.1001 - 


.1002 


Repealed 


.1003- 


.1005 


Repealed 


.1101 - 


.1103 


Repealed 


.1105- 


.1109 


Repealed 


.1111 




Repealed 


.1201 - 


.1205 


Repealed 


.1401 - 


.1408 , 


Repealed 


.1501 - 


.1507 


Repealed 


.1601 - 


.1605 


Repealed 


3C .0102- 


.0104 


Repealed 


.0110 




Repealed 


.0114 




Repealed 


.0201 




Repealed 


.0203 




Repealed 


.0206 




Repealed 


.0209 - 


.0210 


Repealed 


.0212 




Repealed 


.0302 - 


.0305 


Repealed 


.0308 - 


.0312 


Repealed 


.0314 




Repealed 


3E .0101 




Repealed 


3F .0101 - 


.0107 


Repealed 


.0201 - 


.0202 


Repealed 


3G .0001 - 


.0011 


Repealed 


3H .0001 - 


.0003 


** Adopted 


31 .0001 - 


.0012 


** Adopted 


3J .0101 - 


.0103 


*+ Adopted 


.0105 - 


.0109 


** Adopted 


.0107 




** /Vmended 


.0201 - 


.0207 


Adopted 


.0301 - 


.0303 


+ * Adopted 


.0303 




** Amended 


.0304 




Adopted 


3K .0101 - 


.0107 


** Adopted 


.0201 - 


.0205 


** Adopted 


.0301 - 


.0305 


♦+ Adopted 


.0401 - 


.0403 


Adopted 


.0501 - 


.0506 


** Adopted 



1252 5:20 NORTH CAROLINA REGISTER January 15, 1991 



FINAL RULES 



3L 



3M 



3N 
30 



3P 
3Q 



3R 
4A 
4B 



5B 
7H 

IOC 



lOF 

11 

13B 



16A 



178 

17C 
18C 



.0101 
.0201 
.0203 
.0301 
.0101 
.0101 
.0201 
.0203 
.0301 
.0401 
.0501 
.0001 
.0101 
.0201 
.0203 
.0001 
.0101 
.0107 
.0109 
.0201 
.0001 
.0005 
.0026 
.0027 
.0028 
.0012 
.0309 
.0107 
.0110 
.0111 
.0340 

.0102 
.0503 
.0807 
.1005 
.1101 
.1106 
.1110 
.1202 
.1301 
.0105 
.0111 
.0206 
.0303 
.0305 
.0404 
.0407 
.0412 
.0703 
.0706 



.0102 
.1503 
.1505 
.1523 
.1525 
.1532 



.0104 

.0205 
.0302 
.0102 



.0206 
.0302 
.0404 
.0507 
.0005 
.0109 
.0202 
.0210 
.0002 
.0106 
.0108 



.0011 



.0103 



.1102 
.1107 



.0207 

.0306 

.0410 

.0704 
.0707 



.1504 
.1506 



** Adopted 
Adopted 
** Adopted 
Adopted 
♦* Adopted 
** Amended 
Adopted 
** Adopted 
Adopted 
** Adopted 
** Adopted 
** Adopted 
** Adopted 
Adopted 
+ * Adopted 
*+ Adopted 
** Adopted 
Adopted 
** Adopted 
** Adopted 
** Adopted 
Amended 

* Correction 
** Adopted 
Adopted 

** Adopted 
** Amended 
Amended 
Adopted 
** Adopted 
** Amended 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 
** Amended 
Repealed 
Amended 
Amended 
/Vmended 

** .\mended 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



1233 



FINAL RULES 





.1534- 


.1535 




.2001 - 


.2006 


19C 


.0302 
.0400 




21A 


.0204 
.0206 
.0301 




21D 


.0202 
.0207 
.0703 
.0706 
.0911 




24A 


.0202 - 
.0402 
.0405 
.0503 


.0204 


SFCRETARV OF STATE 







18 



NCAC 



.1210 



** Adopted 
** Adopted 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 



Temp. Adopted 
Expires 06-05-91 



DEPARTMENT OF STATE TRE.\SLRER 



20 



NCAC 



.0305 



BOARD OF COSMETIC ART EXAMINERS 

21 NCAC 141 .0105 
BOARD OF MFDICAI EXAMINERS 



21 NCAC 32E 
32L 


.0001 - 
.0001 

.0005 

.0009 


.0008 


32M 


.0001 

.0002 

.0003 - 

.0008 

.0009 

.0010- 

.0012 


.0005 
.0011 


BOARD OF MORTIARV SCIENCE 




21 NCAC 34 


.0123 




BOARD OF Nl RSING 






21 NCAC 36 


.0217 






.0217 
.0222 
.0224 - 


.0225 



Temp. /Vmended 
Expires 06-03-91 



♦* Amended 



Repealed 
Temp. Amended 
Expires 05-1-91 
Temp. Amended 
Expires 05-1-91 
Temp. /Vmended 
Expires 05-1-91 
** Adopted 
Adopted 
** Adopted 
Adopted 
** Adopted 
Adopted 
** Adopted 



Amended 



Temp. .Amended 
Expires 06-05-91 
Amended 
Repealed 
** Adopted 



1234 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



FINAL RULES 



BOARD OF PHYSICAL THERAPY 



21 



NCAC 48C 



.0102 
.0501 



** Amended 
** Amended 



BOARD OF EXAMINERS OF PRACTICING PSYCHOLOGISTS 

21 NCAC 54 .1605 

REAL ESTATE COMMISSION 

21 NCAC 58C .0302 
.0308 
58D .0102 
.0201 
.0302 
.0401 
.0403 

.0405 - .0407 
.0409 

OFFICE OF STATE PERSONNEL 



Amended 



Amended 
Amended 
Amended 
** Amended 
Amended 
Amended 
Amended 
♦* Amended 
** Amended 



25 



NCAC 



ID 



lO 



.0111 
.0211 
.0609 
.0611 
.0701 
.0706 
.0708 
.0709 
.1123 
.1124 
.1125 
.1128 
.1401 
.2301 
.0304 



.0610 



2305 



Adopted 

Amended 

Repealed 

Adopted 

** Amended 

** Amended 

** Amended 

Amended 

** Amended 

Amended 

** Amended 

Amended 

Amended 

** Adopted 

Amended 



OFFICE OF ADMINISTRATIVE HEARINGS 



26 NCAC 1 .0101 - .0102 

.0103 

.0104 

.0104 
.0201 
.0202 

2A .0102 

.0201 - .0203 

.0205 

.0301 

.0302 

.0701 

3 .0029 



Adopted 
Recodified from 
26 NCAC 1 .0001 
Recodified from 
26 NCAC 1 .0003 
Amended 
Adopted 
Recodified from 
26 NCAC 1 .0002 
Amended 
** Amended 
** Amended 
** Amended 
** Repealed 
** Amended 
Amended 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



1235 



ARRC OBJECTIONS 



Th 



he Administrath'e Rules Review Commission (ARRC) objected to the following rules in accord- 
ance with G.S. I43B-30.2(c). State agencies are required to respond to ARRC as provided in G.S. 

I43B-30.2{d). 



ECONOMIC AND COMMUMTY DEVELOPMENT 

Credit Union Division 

4 NCAC 6C .0203 - Fields of Membership 
Agency Revised Rule 

ENTIRON\IENT, HEALTH, AND NATURAL RESOURCES 

Environmental Health 

ISA NCAC ISC .0102 - Definitions 

ISA NCAC ISC .1532 - Variances and Exemptions 

ISA NC.4C ISC .1534 - Max Contaminant Levels for Coliform Bacteria 

ISA NCAC ISC .2001 - General Requirements 

ISA NCAC ISC .2002 - Disinfection 

ISA NCAC 18C .2003 - Filtration 

ISA NCAC ISC .2004 - Analytical and Monitoring Requirements 

ISA NCAC ISC .2005 - Criteria for Avoiding Filtration 

Environmental Management 

ISA NCAC 2H .1203 - Public Notice 

Agency Revised Rule 
ISA NCAC 2N .0703 - Initial Abatement Measures and Site Check 
ISA NCAC 2N .0704 - Initial Site Characterization 

Marine Fisheries 

ISA NCAC 3C .0311 - Cancellation 

Agency Revised Rule 
ISA NCAC 3N .0001 - Scope and Purpose 

Agency Revised Rule 
ISA NCAC 30 .0203 - Shellfish Lease Application Processing 

Agency Re\ised Rule 

Sohd Waste Management 

ISA NCAC I3B .1003 - Eligible Purposes 

Agency Revised Rule 
ISA NCAC 13B .1005 - Priority Factors 

Agency Revised Rule 

Wildhfe Resources Commission 



ARRC Objection S!l6;90 
Obj. Removed 9/20/90 



ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 
ARRC 



Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 
Objection 



10/18/90 
10/ 1 8/ 90 
10'1S:90 

10/18:90 

10iIS!90 
10/18/90 
10/18/90 
10/18/90 



ARRC Objection 8/16/90 
Obj. Removed 9'20'90 
ARRC Objection 11114.90 
ARRC Objection 11/14/90 



ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 



9' 20 90 
10/18/90 
8/16:90 
9/ 20 1 90 
8/I6i90 
9/20i90 



ARRC Objection 8! 16190 

Obj. Removed 920 90 

ARRC Objection 8/16 90 

Obj. Removed 9/20190 



ISA NCAC 1 OH .0302- 
Azencv Rc\ised Rule 



.Minimum Standards 



ARRC Objection 9i20i90 
Obj. Remo\-ed 10/18/90 



1236 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



ARRC OBJECTIONS 



HUMAN RESOURCES 

Facility Services 

/O NCAC 3R .2113 - Definitions 

Agency Revised Rule 
10 NCAC3R .2115 - Need for Services 

Agency Revised Rule 
10 NCAC 3V .0303 - Insurance Required 

Individual and Family Support 

10 NCAC 42C .3301 - Existing Building 

10 NCAC 42D .1401 - Qualifications of Administrator j Co- Administrator 

INSURANCE 

Agent Services Division 

// NCAC 6 A .0702 - Prelicensing Education Schools 
Agency Revised Rule 

Financial Evaluation Division 

11 NCAC IIB .0607 - Application - Employers 
Agency Returned Rule Without Change 

11 NCAC IIB .0610 - Application - Groups 
Agency Returned Rule Without Change 

Life: Accident and Health Division 

// NCAC 12 .0904 - Requirements for Utilization Review 

LICENSING BOARDS AND COMMISSIONS 

Medical Examiners 

21 NCAC 32M .0007 - Termination ofNP Approval 

Nursing, Board of 

21 NCAC 36 .0217 - Revocation, Suspension, or Denial of License 

Physical Therapy 

21 NCAC 48C .0102 - Responsibilities 

Agency Returned Rule Unchanged 
21 NCAC4SC .0501 - Exemption for Students 

Agency Returned Rule Unchanged 

Plumbing and Heating Contractors 

21 NCAC 50 .1203 - Disposition of Petitions 
21 NCAC 50 .1207 - Request to Participate 



ARRC Objection 9120/90 
Obj. Removed 9121190 
ARRC Objection 9120/90 
Obj. Removed 9/21/90 
ARRC Objection 11/14/90 



ARRC Objection 11/14/90 
ARRC Objection 11/14J90 



ARRC Objection 8/16/90 
Obj. Removed 9/20/90 



ARRC Objection 8/16190 
9/20/90 

ARRC Objection 8/16/90 
9/20/90 



ARRC Objection 12/20/90 



ARRC Objection 11/14/90 



ARRC Objection 12/20/90 



ARRC Objection 9/20/90 
No Action 10/18/90 

ARRC Objection 9/20/90 
No Action 10/18/90 



ARRC Objection 11/14/90 
ARRC Objection 11/14/90 



5:20 NORTH CAROLINA REGISTER January 15, 1 99 1 



1237 



ARRC OBJECTIONS 



PUBLIC EDUCATION 

Elementary and Secondary Education 

J6 NCAC 6C .03/2 - Certificate Suspension and Revocation 

Agency Revised Rule 
16 NCAC 6D .0105 - Use of School Day 

Objection Reconsidered and Failed 

Clincher Motion Passed 

.Agency Filed Rule for Codification in the NCAC 

SECRETARY OF STATE 



ARRC Objection 
Obj. Removed 
ARRC Objection 



81 1 6190 
9/20190 
6121190 
7IJ9/90 

9/28190 



Securities Division 

J8 NCAC 6 .1210 ■ Securities Exchgs/Autod Quot. Sys. Approved/ Admin ARRC Objection 12/20;90 

STATE PERSONNEL 



25 NCAC IB .0/07 - Personnel Commission Meetings 


ARRC Objection 


9/20/90 


25 NCAC IB .0108 - Commission Staff 


ARRC Objection 


9/ 20; 90 


25 NCAC IB .0/09 - Commission Actions 


ARRC Objection 


9/20:90 


25 NCAC IB .01/0 - .Motions 


ARRC Objection 


9/20/90 


25 NCAC /B .0/// - Voting 


ARRC Objection 


9/20/90 


25 NCAC /B .0//2 - Abstention 


ARRC Objection 


9/20/90 


25 NCAC /B .0/13 - Duties of the Chairman 


ARRC Objection 


9/20/90 


25 NCAC IB .0114 - Order of Business 


ARRC Objection 


9/20/90 


25 NCAC IB .0/15 - Special Meetings 


ARRC Objection 


9/20/90 


25 NCAC IB .01 16 - Duties of Chairman Between Meetings of the Comm 


ARRC Objection 


9/20/90 


25 NCAC IB .0/17 - Standing/ Special Committees 


ARRC Objection 


9/20,90 


25 NCAC IB .01/8 - Minutes 


ARRC Objection 


9/20/90 


25 NCAC IB .01/9 - Notice of Commission Action 


ARRC Objection 


9/20/90 


25 NCAC IB .0/20 - Appointment of Vice-Chairman 


ARRC Objection 


9/20/90 


Agency Withdrew Rules .0/07 - .0/20 


" 


10/18/90 


25 NCAC /L .020/ - Purpose 


ARRC Objection 


9: 20; 90 


25 NCAC IL .0202 - Policy 


ARRC Objection 


9; 20, 90 


Agency Withdrew Rules .0201 - .0202 




10/18/90 


25 NCAC IL .0206 - Anti-Discrimination 


ARRC Objection 


9/ 20; 90 


Agency Revised Rule 


Obj. Removed 


9/21 ;90 


25 NCAC IL .0207 - Testing and Examination 


ARRC Objection 


9/20;90 


Agency Revised Rule 


Obj. Removed 


9/21/90 



STATE TREASURER 

Local Government Commission 

20 NCAC 3 .1003 - Petition for Hearing 

Agency Revised Rule 
20 NCAC 3 ./004 - Hearing Officer 

.Agency Withdrew Rule 



ARRC Objection 9/20/90 
Obj. Removed 9/20; 90 

9/20/90 



1238 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



RULES INVALIDATED BY JUDICIAL DECISION 



1 his Section of the Register lists the recent decisions issued by the North Carolina Supreme Court, 
Court of Appeals, Superior Court (when available), and the Office of Administrative Hearings which 
invalidate a rule in the North Carolina Administrative Code. 



10 NCAC IB .0202(c) - REQUEST FOR DETERMINA TION 

Thomas R. West, Administrative Law Judge with the Office of Administrative Hearings, declared Rule 
10 NCAC IB .0202(c) void as applied in New Hanover Memorial Hospital, Inc., Petitioner v. N.C 
Department of Human Resources, Division of Facility Services, Certificate of Need Section, Respondent 
(90 DHR 0792). 

10 NCAC IB .0202(c) - REQUEST FOR DETERMINA TION 

Brenda B. Becton, Administrative Law Judge with the Office of Administrative Hearings, declared Rule 
10 NCAC IB .0202(c) void as applied in High Point Regional Hospital, Inc., Petitioner v. Department 
of Human Resources, Division of Facility Services, Certificate of Need Section, Respondent (90 DHR 

0770). 

10 NCAC 3R .0317(g) - WITHDRAWAL OF A CERTIFICATE 

Robert Roosevelt Rerlly, Jr., Administrative Law Judge with the Office of Administrative Hearings, 
declared Rule 10 NCAC 3R .0317(g) void as applied in Dawn Health Care, a North Carolina General 
Partnership, Petitioner v. Department of Human Resources, Certificate of Need Section, Respondent (90 
DHR 0296). 

10 NCAC3R .0317(g) - WITHDRA WAL OF CERTIFICA TE 

Michael Rivers Morgan, Administrative Law Judge with the Office of Administrative Hearings, de- 
clared Rule 10 NCAC 3R .0317(g) void as applied in Autumn Corporation, Petitioner v. N.C. Depart- 
ment of Human Resources, Division of Facility Services, Certificate of Need Section, Respondent (90 
DHR 0321 and 90 DHR 0318). 

10 NCAC 261 .0101 - PURPOSE: SCOPEINOTICE OF CHANGE IN LEVEL OF CARE 

10 NCAC 261 .0102 - REQUESTS FOR RECONSIDERA TION AND RECIPIENT APPEALS 

10 NCAC 261 .0104 - FORMAL APPEALS 

Thomas R. West, Administrative Law Judge with the Office of Administrative Hearings, declared Rules 
10 NCAC 261 .0101, 10 NCAC 261 .0102 and 10 NCAC 261 .0104 void as appUed in Linda Allred, 
Petitioner v. North Carolina Department of Human Resources, Division of Medical Assistance, Re- 
spondent (90 DHR 0940). 

10 NCAC 42W .0003(c) - COUNTY DEPT OF SOCIAL SERVICES RESPONSIBILITIES 
10 NCAC 42 W .0005 - REPORTING CASES OF RAPE AND INCEST 

The North Carolina Court of Appeals per, Judge Robert F. Orr, declared Rules 10 NCAC 42W 
.0003(c) and 10 NCAC 42W .0005 void as applied m Rankin Whittington, Daniel C. Hudgins. Dr. Takey 
Crist, Dr. Gwendolyn Boyd and Planned Parenthood of Greater Charlotte, Inc., Plaintiffs v. The North 
Carolina Department of Human Resources, David Flaherty, in his capacity as Secretary of the North 
Carolina Department of Human Resources, The North Carolina Social Services Commission, and C 
Barry McCarty, in his capacity as Chairperson of the North Carolina Social' Services Commission, De- 
fendants [100 N.C. App. (1990)1. 



5:20 NORTH CAROLINA REGISTER Janumy 15, 1991 1239 



NORTH CAROLINA ADMINISTRA THE CODE CLASSIFICA TION SYSTEM 



The Xorth Carolina Administraiive Code ( NCAC) has four major subdivisions of rules. Two 
of these, titles and chapters, are mandatory. The major subdivision of the NCAC is the title. 
Each major department in the North Carolina executive branch of government has been as- 
signed a title number. Titles are further broken down into chapters which shall be numerical 
in order. The other two, subchapters and sections are optional subdivisions to be used by 
agencies when appropriate. 

TITLE/MAJOR DFV ISIONS OF THE NORTH CAROLINA ADMINISTRATE E CODE 



TITLE DEPARTMENT 

1 Administration 

2 Agriculture 

3 Auditor 

4 Economic and Community 
Development 

5 Correction 

6 Council of State 

7 Cultural Resources 

8 Elections 

9 Governor 

10 Human Resources 

1 1 Insurance 

12 Justice 

1 3 Labor 

14A Crime Control and Public Safety 

15A Environment, Health, and Natural 
Resources 

16 Public Education 

17 Revenue 

18 Secretar\' of State 
19A Transportation 
20 Treasurer 

*21 Occupational Licensing Boards 

22 Administrative Procedures 

23 Community Colleges 

24 Independent Agencies 

25 State Personnel 

26 Administrative Hearings 



LICENSING BOARDS 


CHAPTER 


Architecture 


2 


Auctioneers 


4 


Barber Examiners 


6 


Certified Public Accountant Examiners 


8 


Chiropractic Examiners 


10 


General Contractors 


12 


Cosmetic Art Examiners 


14 


Dental Examiners 


1-6 . 


Electrical Contractors 


18 


Foresters 


20 


Geologists 


21 


Hearing Aid Dealers and Fitters 


22 


Landscape Architects 


26 


Landscape Contractors 


28 


Marital & Family Therapy 


31 


Medical Examiners 


32 


Midwifen,' Joint Committee 


33 


Mortuary Science 


34 


Nursing 


36 


Nursing Home Administrators 


37 


Occupational Therapists 


38 


Opticians 


40 


Optometry 


42 


Osteopathic Examination and 


44 


Registration 




Pharmacy 


46 


Physical Therapy Examiners 


48 


Plumbing and Heating Contractors 


50 


Podiatr>' Examiners 


52 


Practicing Counselors 


53 


Practicing Psychologists 


54 


Professional Engineers and Land Surveyors 56 


Real Estate Commission 


58 


Refrigeration Examiners 


60 


Sanitarian Examiners 


62 


Social Work 


63 


Speech and Language Pathologists and 


64 


Audiologists 




Veterinarv' Medical Board 


66 



Note: Title 21 contains the chapters of the various occupational licensing boards. 



1240 



5:20 NORTH CAROLINA REGISTER January 15, 1991 



CUMULA TIVE INDEX 



CUMULA TIVE INDEX 

(April 1990 - March 1991) 



1990 - 1991 



Pages 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

FR - Final Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

M - Miscellaneous 

N'P - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Temporary Rule 



ADMIMSTRATION 

Auxiliary- Services, 860 PR 

State Property and Construction, 411 PR 

ADMIMSTRAXrVT HEARINGS 

Rules Division, 792 PR 

AGRICULTURE 

Markets, 737 PR 

Plant Conservation Board, 1 PR 

Plant Industry, 739 PR 



Issue 



1 - 151 1 - April 

152 - 235 2 - April 

236 - 285 3 - May 

286 - 312 4 - May 

313 - 407 5 - June 

408 - 473 6 - June 

474 - 513 7 - July 

514 - 603 8 - July 

604 - 635 9 - August 

636 - 723 10 - August 

724 - 791 11 - September 

792 - 859 12 - September 

860 - 895 13 - October 

896 - 956 14 - October 

957 - 1009 15 - November 

1010 - 1059 16 - November 

1060 - 1106 17 - December 

1107 - 1176 18 - December 

1177 - 1214 19 - January 

1215 - 1244 20 - January 



5:20 NORTH CAROLINA REGISTER January 15, 1 99 1 



I24I 



CUMULA TIVE INDEX 



State Fair, 737 PR 

Structural Pest Control Committee, 7 PR 

COMMLAITY COLLEGES 

Community CoUeges, Department of, 1031 PR 

CORRECTION 

Division of Pnsons, 762 FR, 867 FR, 93S FR, 1035 FR 

CRLME CONTROL AND PUBLIC SAFETY 

State Hishwav Patrol, 53 PR, 804 PR 
Butncr Public Salety Division, 419 PR 

ECONOMIC AND COMMLAITY DEVELOPMENT 

Banking Commission, 16 PR, 1062 PR, 1 108 PR 

Communitv Assistance, 25 PR, 317 PR, 1110 PR 

Credit Union, 317 PR, 860 PR 

Energ%- Division, 1013 PR 

Hazardous Waste Management, 742 PR, 1109 PR 

Milk Comrmssion, 24 PR, 741 PR 

ENA IRONMENT, HEALTH, AND NATURAL RESOURCES 

Coastal Manaccment, 136 PR, 292 PR, 707 PR, 979 PR 

Environmental Management, 54 PR, 193 PR, 420 PR, 542 PR, 706 PR, 744 PR, 912 PR, 1019 PR, 

1121 PR, 1185 PR 
Health Ser\ices, 190 PR, 565 PR, 816 PR, 860 PR, 1123 PR, 1188 PR 
Land Resources, 744 PR 
Marine Fisheries, 63 PR, 484 PR, 805 PR 
State Registrar, 1221 PR 

Wastewater Treatment Plant Operators Certification Commission, 551 PR 
Water Treatment Facilitv Operators Board of Certification, 621 PR, 983 PR 
Wildlife Resources and Water Safetv, 137 PR, 206 PR, 293 PR, 349 PR, 438PR, 563 PR, 748 PR, 815 PR, 

924 PR, 1020 PR, 1074 PR, 1186 PR, 1220 PR 

FESAL DECISION LETTERS 

Voting Rights Act, 241, 286, 316, 605, 638, 792, 957, 1011, 1061, 1107 

FINAL RULES 

List of Rules Codified, 143 FR, 226 FR, 302 FR, 463 FR, 587 FR, 710 FR,842 FR, 944 FR, 1047 FR, 
1166 FR, 1230 FR 

GO\ ERNOR/LT. GOVERNOR 

Executive Orders, 236, 313, 408, 474, 514, 604, 636, 724, 896, 1010, 1060 

HUMAN RESOURCES 

Aging, Division of 704 PR 

Drug^Commission, 870 FR, 939 FR 

Facility Services, 516 PR, 702 PR, 958 PR, 1116 PR, 1216 PR 

Flealth Ser\ices, 152 PR, 245 PR 

Medical Assistance, 191 PR. 911 PR, 1018 PR 

Mental Health, Developmental Disabilities and Substance Abuse Services, 29 PR, 318 PR, 475 PR, 898 PR 

1219 PR 
Ser\-ices for the Bhnd, 412 PR 

Ser\'ices for the Deaf and the Hard of Hearing, 1065 PR 
Social Sen-ices, 247 PR, 607 PR, 976 PR 

\\'ater Treatment Facility Operators Board of Certification, 27 PR 
Youth Ser\ices, 261 PR 



1242 5:20 NORTH CAROLINA REGISTER January 15, 1991 



CUMULA TIVE INDEX 



INSURANCE 

Actuarial Services Division, 480 PR 

Admission Requirements, 1220 PR 

Agent Services Division, 321 PR, 520 PR 

Engineering and Building Codes, 793 PR 

Financial Evaluation Division, 342 PR, 525 PR 

Fire and Casualty Division, 335 PR, 478 PR, 796 PR 

Life: Accident and Health, 264 PR, 287 PR, 529 PR, 798 PR 

Medical Database Commission, 1120 PR 

JUSTICE 

Attorney General, Office of the, 192 PR, 273 PR 

Criminal Justice Education and Training Standards Commission, 704 PR, 1178 PR 

Sheriffs' Standards Division, 608 PR 

LICENSING BOARDS 

Architecture, Board of, 1162 PR 

Auctioneers Commission, 1093 PR 

Certified Public Accountant Examiners, 983 PR 

Cosmetic Art Examiners, Board of, 355 PR, 708 PR, 927 PR 

Dental Examiners, Board of, 1 196 PR 

Electrical Contractors, Board of Examiners of 356 PR 

Medical Examiners, Board of, 207 PR, 838 PR, 862 PR, 1222 PR 

Midwifen.- Jomt Committee, 994 PR 

Mortuarv^ Science, Board of, 749 PR 

Nursmg,' Board of, 300 PR, 496 PR, 994 PR, 1096 PR, 1199 PR 

Nursing Home Administrators, Board of 750 PR, 1203 PR 

Pharmacy, Board of, 1031 PR 

Physical Therapy Examiners, Board of, 443 PR 

Plumbing and Heating Contractors, Examiners, 621 PR, 1204 PR 

Practicing Psychologists, Board of, 755 PR 

Real Estate Commission, 625 PR, 863 PR 

NOTICE 

OAH, Change of Address, 1215 

NOTICE OF PETITION 

Municipal Incorporation, 1177 

PUBLIC EDUCATION 

Elementar>' and Secondary, 141 PR, 275 PR, 351 PR, 1028 PR, 1160 PR 

REVENUE 

Individual Income Tax, 359 FR, 1036 FR 
Intangibles Tax Di\ision, 1226 FR 
License and Excise Tax Division, 445 FR 
Sales and Use Tax, 213 FR, 453 FR, 872 FR 

SECRETARY OF STATE 

Corporations Division. 489 PR 

Secunties Division, 293 PR, 495 PR, 927 PR, 1029 PR 

STATE PERSONTsEL 

State Personnel Commission, 277 PR, 500 PR, 756 PR, 996 PR, 1206 PR 

STATE TREASURER 

Department Rules, 352 PR 

Local Government Commission, 352 PR, 442 PR, 1195 PR 

Solid Waste Management Capital Projects Financing Agency, 354 PR 



5:20 NORTH CAROLINA REGISTER January 15, 1991 1243 



CUMULA TIVE INDEX 



STATEMENTS OF ORGANIZATION 

Statements of Organization, 639 SO 

TRANSPORTATION 

HJt^wavs, Division of, 765 FR, 883 FR, 1038 FR 
Motor Vehicles, Division of, 222 FR, 773 FR, 943 FR 



1244 5:20 NORTH CAROLINA REGISTER January 15, 1991 



NORTH CAROLINA ADMINISTRATIVE CODE 

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